While plugged into your computer and with iTunes open, hold the power button for 2 seconds then press the home button while holding the power button for 10 more seconds. Your computer should make the sound that a USB Device has been unplugged, then keep holding the home button until you hear the sound your computer makes when you plug a device in. iTunes should say that it found an iPod i restore mode, cancel everything else and unplug it. Restore the iPod on another computer because it seems that the iTunes is the culprit.
Good Luck, it worked for me! unfortunately i sent 3 ipods back to apple before i realized my computer was doing this....